Indonesia Seizes Mining Land from PT Weda Bay and Others

The Government of Indonesia seized hundreds of acres of land from multiple mining companies after a government taskforce identified over 4.2 million hectares managed by 51 companies as lacking appropriate forestry approvals. These enforcement actions included the seizure of a 173-hectare area managed by PT Tonia Mitra Sejahtera in South-east Sulawesi and a 148-hectare rock quarry at a PT Weda Bay Nickel concession on Halmahera island.

Following the seizures, the benchmark three-month nickel price on the London Metal Exchange rose by 1.32% to $15,350 per tonne. Eramet, a partner in PT Weda Bay Nickel, stated it does not expect the seizures to cause significant operational impact.

Parallel to the regulatory crackdown, Norway's sovereign wealth fund excluded Eramet from its portfolio. The fund cited concerns over deforestation, environmental damage, and human rights violations linked to the company's ventures in Indonesia.